Correlation Between Sibanye Stillwater and KASPIKZ (SPGDR
Can any of the company-specific risk be diversified away by investing in both Sibanye Stillwater and KASPIKZ (SPGDR at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Sibanye Stillwater and KASPIKZ (SPGDR into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sibanye Stillwater Limited and KASPIKZ 1, you can compare the effects of market volatilities on Sibanye Stillwater and KASPIKZ (SPGDR and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Sibanye Stillwater with a short position of KASPIKZ (SPGDR. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sibanye Stillwater and KASPIKZ (SPGDR.
Diversification Opportunities for Sibanye Stillwater and KASPIKZ (SPGDR
0.59 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Sibanye and KASPIKZ is 0.59. Overlapping area represents the amount of risk that can be diversified away by holding Sibanye Stillwater Limited and KASPIKZ 1 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on KASPIKZ (SPGDR and Sibanye Stillwater is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Sibanye Stillwater Limited are associated (or correlated) with KASPIKZ (SPGDR. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of KASPIKZ (SPGDR has no effect on the direction of Sibanye Stillwater i.e., Sibanye Stillwater and KASPIKZ (SPGDR go up and down completely randomly.
Pair Corralation between Sibanye Stillwater and KASPIKZ (SPGDR
Assuming the 90 days horizon Sibanye Stillwater Limited is expected to generate 1.97 times more return on investment than KASPIKZ (SPGDR. However, Sibanye Stillwater is 1.97 times more volatile than KASPIKZ 1. It trades about 0.14 of its potential returns per unit of risk. KASPIKZ 1 is currently generating about -0.09 per unit of risk. If you would invest 86.00 in Sibanye Stillwater Limited on November 3, 2024 and sell it today you would earn a total of 10.00 from holding Sibanye Stillwater Limited or generate 11.63% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sibanye Stillwater Limited vs. KASPIKZ 1
Performance |
| Timeline |
| Sibanye Stillwater |
| KASPIKZ (SPGDR |
Sibanye Stillwater and KASPIKZ (SPGDR Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sibanye Stillwater and KASPIKZ (SPGDR
The main advantage of trading using opposite Sibanye Stillwater and KASPIKZ (SPGDR positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sibanye Stillwater position performs unexpectedly, KASPIKZ (SPGDR can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in KASPIKZ (SPGDR will offset losses from the drop in KASPIKZ (SPGDR's long position.| Sibanye Stillwater vs. DXC Technology Co | Sibanye Stillwater vs. Kingdee International Software | Sibanye Stillwater vs. Easy Software AG | Sibanye Stillwater vs. Perdoceo Education |
| KASPIKZ (SPGDR vs. Sibanye Stillwater Limited | KASPIKZ (SPGDR vs. Impala Platinum Holdings | KASPIKZ (SPGDR vs. Cellink AB | KASPIKZ (SPGDR vs. Mowi ASA |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Portfolio Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
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